A CAMBUSLANG charity organisation fears it won’t be able to provide its normal service after a change in its banking charges.

For years, Healthy n Happy, the Cambuslang and Rutherglen Community Health Initiaitive, has been banking with the Royal Bank of Scotland on a charitable account.

However, they were shocked when the Royal Bank recently wrote to them informing the group the bank would be discontinuing their charitable treasurers’ account, and would need to move to a new account which would incur charges.

Healthy n Happy was founded just over 10 years ago, and the news has come as a real blow, fearing it could cost them at least £1000 a year in charges.

It is understood that the CHI have received the free banking for a considerable number of years.

May Caldwell, chairperson of Healthy n Happy, has written to Royal Bank of Scotland chairman Sir Philip Hampton and chief executive Stephen Hester.

In her letter, she wrote: “We recently received information from Mr Robert White, RBS Relationships Manager in Edinburgh, that RBS would no longer be able to honour the discounted tariff agreement with our charity. Presumably this also applies to all the other charities who bank with RBS.

“We are truly disappointed at this move by RBS. We understand the current economic situation which is already hitting charities very hard. Many will not survive and it is often running costs that push them over the edge as many grant funders will not award full cost recovery in their awards.

“It is unfortunate that those who appear to be paying for the difficulties in the economic world are those least able to afford it and indeed those who most benefit from the activities of charities. It is simply not fair or just.

“I am sure the change you are making is not big business to a huge publicly funded organisation like RBS. However it has big consequences for charities. So why not be big and overturn this very unfortunate decision.”

A spokesman for the Royal Bank of Scotland said: “Unfortunately we haven't received authority from the charity so are unable to comment on this case in detail.

“However, we can confirm that charities will receive free banking if their annual turnover is below £100k.

“We will of course look at options to help minimise any charges for larger charities with a turnover in excess of £100k and we are working with officials from the charity in this respect.”

Initiative director Brendan Rooney added: “We worry that this could contribute to to charities and groups closing. We’re really disappointed by this news and are concerned about the effect it will have on ourselves and other charities.

“This could cost us £1000 in charges, and that’s a moderate estimate.

“We always understood it was an account with relief on charges, but really, how much will the bank save on charities over the year? I don’t think it would be very much in the grand scheme of things, and the cost would impact massively on charities in Scotland and throughout the UK.

“We’re now having to consider if we can continue to operate our finances in the we we have, and do we need to look at other banks - and it’s not an easy process to change over.”